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DroneShield, which produces a range of innovative drone defence technology systems, says the capital raise received strong support from existing shareholders as well as new domestic and international institutions and sophisticated investors.
The $120 million fully underwritten placement of 104.3 million new shares was priced at $1.15 per share and compares to a record high of $2.72 reached on 16 July and the most recent close of $1.39.
The latest capital raise follows a $75 million raise in April aimed at helping the company fulfill a raft of new contracts for its drone-defence technology globally.
DroneShield says the placement announced today will largely be used to drive new and existing research and development programs, including artificial intelligence R&D into new counterdrone (C-UxS) products.
The company says next-generation R&D is “critical for C-UxS systems to continuously evolve and detect, track and neutralise increasingly sophisticated drone threats”.
“This placement is enabling us to undertake a number of rapid R&D programs in response to end user requirements, over the next 12 to 24 months,” says DroneShield CEO Oleg Vornik.
“This favourably positions DroneShield to fuel its revenue growth and further increase its margins, due to anticipated increase in AI SaaS offerings and higher sales pricing for the underlying hardware, as the C-UxS market continues to rapidly grow, supported by the current tailwinds through drones being used extensively for nefarious purposes globally.”
DroneShield has a sales pipeline that has doubled to $1.1 billion in the past three months with 110 qualified projects at different stages for government customers including the US military and NATO. The company says $28 million of contracted sales orders are currently being fulfilled.
Sales growth led to record revenues of $24.1 million in the first half of 2024, up 110 per cent on the previous corresponding period.
Notably, first half SaaS (Software-as-a-Services) revenues hit $1.3 million, up 93 per cent over the past year.
DroneShield says the second half of the year, especially the December quarter, is traditionally a stronger period for the company.
DroneShield says it aims to capitalise on the strong momentum achieved in the first half and the current geopolitical environment which has seen the use of drones headline armed conflicts globally.
It highlights plans for a “significant ramp up” in the Asia region, as various countries begin C-UAS programs against Chinese drones in the region.
DroneShield shares traded more than 19 per cent lower at the open, but they have since managed to stay above the latest raise's issue price. The shares last changed hands for $1.20 at 10.38am (AEST).
Source : DroneShield defies share price slump by raising $120m (businessnewsaustralia.com)
